Telemarketing

AAA

DEFINITION of 'Telemarketing'

The act of marketing goods or services to potential customers over the telephone. Telemarketing may either by carried out by telemarketers, or increasingly, by automated telephone calls or "robocalls." The intrusive nature of telemarketing, as well as reports of scams and fraud perpetrated over the telephone, has spurred a growing backlash against this direct marketing practice.


Also known as telesales or inside sales.

INVESTOPEDIA EXPLAINS 'Telemarketing'

The United States and Canada have national "Do Not Call"(DNC) registries that give their residents a choice about whether to receive telemarketing calls at home. In the United States, the registry is managed by the Federal Trade Commission (FTC) and enforced by the FTC, Federal Communications Commission and state law enforcement officials.


Consumers who are registered in the DNC database can file a complaint if they receive a call from a telemarketer, which could lead to a stiff fine and sanctions for the telemarketing firm. However, calls from charities, political organizations and telephone surveyors are permitted and would be received by a consumer, despite listing his or her phone number on the DNC registry. Also permitted are calls from businesses with whom the consumer has an existing relationship, as well as those businesses where consent to call has been provided in writing.


In recent years, numerous North American firms have outsourced their telemarketing functions to lower cost jurisdictions such as India, Mexico and the Philippines.

RELATED TERMS
  1. Direct Marketing

    A form of advertising in which physical marketing materials are ...
  2. Cold Calling

    The solicitation of potential customers who were not anticipating ...
  3. Boiler Room

    A place where high-pressure salespeople use banks of telephones ...
  4. Federal Trade Commission - FTC

    An independent federal agency whose main goals are to protect ...
  5. Viral Marketing

    Internet advertising or marketing that spreads exponentially ...
  6. Dialing and Smiling

    A telemarketing technique in which unsolicited, or "cold" calls, ...
RELATED FAQS
  1. How can a business determine its most effective value proposition?

    To determine its most effective value proposition, a company must make a purposeful effort to craft a unique value proposition ... Read Full Answer >>
  2. What is a boiler room operation?

    In the context of investing, the term "boiler room operation" refers to the use of high pressure sales tactics to sell stocks ... Read Full Answer >>
  3. How does a long tail become profitable?

    A long tail becomes profitable because the costs to produce, market and distribute a product or service in a niche are low, ... Read Full Answer >>
  4. How do companies with a large product portfolio use BCG Analysis?

    BCG analysis is used to evaluate an organization's product portfolio in sales planning and marketing. It is specifically ... Read Full Answer >>
  5. What are the similarities between product differentiation and product positioning?

    Product differentiation and product positioning are important elements in a marketing plan, and most marketing strategies ... Read Full Answer >>
  6. Why is product differentiation important in today's financial climate?

    Product differentiation is essential in today's financial climate. It allows the seller to contrast its own product with ... Read Full Answer >>
Related Articles
  1. Professionals

    How To Target Ideal Customers

    Expand your definition of a lucrative client and uncover a new realm of possibilities.
  2. Professionals

    Tips For Fitting In At Your Brokerage Firm

    Part of starting a successful career as a broker is finding the right place to work.
  3. Brokers

    Alternatives To The Cold Call

    Want to build your business as a financial professional? We provide some choice advice.
  4. Retirement

    Cold Call Without Getting The Cold Shoulder

    Learn how to warm up prospective clients to your business and your abilities.
  5. Professionals

    How Top Advisors Innovate to Stay Ahead

    Successful advisors are innovative, reaching out to a new generation of clients by embracing new technology.
  6. Stock Analysis

    Will Jet.com Revolutionize Shopping?

    Jet.com has arrived and will look to steal market share from Amazon over the next several years. Will it be successful?
  7. Professionals

    How to Respond to 'I Already Have an Advisor'

    Every advisor has met someone who already works with an advisor. Here are some tips for keeping the door open.
  8. Professionals

    How Financial Advisors Can Woo Wealthy Clients

    To woo wealthy clients, offer the resources they need and design a strategic website and marketing plan to bring those desired clients into your firm.
  9. Investing

    Who Are Millennials and Why Do They Matter?

    With more than 80 million members, the Millennial generation represents a key consumer segment. Ignore them at your peril.
  10. Investing

    How Advisors Can Get the Most Out of Social Media

    It's imperative for financial advisors to take advantage of social media tools, and they should start with the most effective, fastest-growing options.

You May Also Like

Hot Definitions
  1. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
  2. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
  3. Killer Bees

    An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an ...
  4. Sin Tax

    A state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. ...
  5. Grandfathered Activities

    Nonbank activities, some of which would normally not be permissible for bank holding companies and foreign banks in the United ...
  6. Touchline

    The highest price that a buyer of a particular security is willing to pay and the lowest price at which a seller is willing ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!